Pakistani security officials based in the area said the drone fired two missiles and hit a small building at Razmak Adda in Miranshah bazaar. Officials told NBC News three people were killed and two others had been injured.

"Two of the injured taken to hospital were in critical condition," a security official told NBC News.

The security official said there was no immediate information regarding identities or nationalities of the victims, but added that many foreigners have been living in the Miranshah market area, where they have access to electricity and telephone service.

The United States has been urging Pakistani officials to mount an offensive in the area to pursue members of the Haqqani militant network, one of Washington's most feared foes in neighboring Afghanistan.

The controversial drone program, a key element in U.S. counter-terrorism efforts, is highly unpopular in Pakistan, where it is considered a violation of sovereignty that causes unacceptable civilian casualties.